Printer Friendly

CARENETWORK RECORDS $.11 FIRST QUARTER 1992 LOSS

 CARENETWORK RECORDS $.11 FIRST QUARTER 1992 LOSS
 MILWAUKEE, April 28 /PRNewswire/ -- CareNetwork, Inc. (NASDAQ: CRNT)


announced a $550,000 loss in the first quarter of 1992 primarily due to higher than anticipated health care costs in its Wisconsin Health Organization (WHO) subsidiary and to administrative expenses incurred in preparation for geographic expansion outside of Wisconsin.
 First quarter 1992 loss was $550,000 on revenues of $44,793,000. Revenues were up 16.8 percent over $38,338,000 first quarter 1991 revenues. On a per-share basis, the first quarter 1992 result reflects a $.11 loss as compared to a $.35 gain for the first quarter of 1991. The first quarter 1992 loss reflects the dilution from the issuance of 2,104,083 shares due to the April 1991 initial public offering.
 WHO's health care costs were higher than anticipated since shifting from a fully capitated hospital reimbursement system to a per diem system for 70 percent of its commercial members during the first quarter of 1991.
 CareNetwork's quarterly administrative expenses were also higher due in part to the staffing of CareNetwork Medical Management Corporation to support geographic expansion needs and also due to some expenses associated with the conversion of the corporation's data processing systems. As a result, CareNetwork's administrative expense ratio was 10.4 percent for the first quarter.
 "The first quarter results are indeed disappointing. We are committed to restoring value in the company for our investors in the coming months," said Kipton Kaplan, president and chief executive officer, CareNetwork, Inc. "We have also taken aggressive steps to control administrative expenses for the balance of 1992."
 Craig R. Kasten, chief operating officer, said, "We have developed and are implementing operational plans to restore future profitability in our WHO business."
 Specific operating goals include the following:
 -- Renew WHO hospital per diem contracts at rates which will result in an 87.5 percent medical loss ratio;
 -- Reduce WHO's administrative expense ratio to 8.5 percent by year- end;
 -- Expand WHO Medicaid enrollment with addition of Sinai-Samaritan physicians to the Medicaid provider network;
 -- Reduce or eliminate WHO's commercial enrollment in certain WHO smaller markets to produce substantial pre-tax savings;
 -- Realize increased pharmacy discounts from average wholesale price effective April 1, 1992, to produce $1.2 million pre-tax savings;
 -- Develop capitation contracts for ancillary services.
 CARENETWORK, INC.
 SUMMARY FINANCIAL RESULTS
 (Dollars in thousands, except per-share data)
 First Quarter
 1992 1991
 Total revenues $44,793 $38,338
 Medical expenses 41,352 33,906
 Administrative expenses 4,670 (2,975)
 Operating income (1,229) 1,357
 Other income 267 250
 Income taxes 412 (552)
 Minority interest --- 27
 Net income $(550) $1,028
 Earnings per share $(.11) $.35
 Medical loss ratio (pct) 92.5 88.9
 Admin. expense ratio (pct) 10.4 7.8
 Weighted average shares
 outstanding (000s) 4,879 2,929
 CareNetwork, Inc. is the parent company for Wisconsin Health Organization Insurance Corp.; Network EPO, Inc.; Geneva Benefits Administration, Inc.; and CareNetwork Medical Management Corp.
 /CONTACT: Craig R. Kasten, 414-223-7712, Patrick A. Roberts, 414-223-7752, or Walter R. Barry, 414-223-0172, all of CareNetwork/
 (CRNT) CO: CareNetwork, Inc. ST: Wisconsin IN: INS SU: ERN


KH -- MN010 -- 3824 04/28/92 12:52 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 28, 1992
Words:528
Previous Article:CEREMONIES FOR 'CLEAN STREETS/CLEAN BEACHES' CAMPAIGN
Next Article:CU BANCORP REPORTS 1992 FIRST-QUARTER RESULTS


Related Articles
CARENETWORK RECORDS 90.4 PERCENT EARNINGS INCREASE
CARENETWORK SAYS FIRST QUARTER AND YEAR END 1992 RESULTS WILL BE DOWN
CARENETWORK RECORDS $0.16 PER SHARE SECOND QUARTER LOSS
CARENETWORK RECORDS THIRD QUARTER 1992 LOSS
CARENETWORK RECORDS A 1992 LOSS
CARENETWORK REPORTS A $.45 PER SHARE FIRST QUARTER 1993 LOSS
CARENETWORK RECORDS $.61 PER SHARE LOSS IN THIRD QUARTER
CARENETWORK REPORTS A $2.27 PER SHARE LOSS FOR 1993
CARENETWORK REPORTS A $.03 PER SHARE LOSS FOR FIRST QUARTER 1994
/C O R R E C T I O N -- CARENETWORK/

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters